The pound is currently trading at 1.1757 against the euro, according to the latest data from Bloomberg at the time of writing. Sterling enjoyed a six month high against the Eurozone currency yesterday following on from data showing the Tory party are ahead in the polls and look set to win the General Election in December.
Speaking exclusively to Express.co.uk, Michael Brown, Senior Market Analyst at Caxton FX said: “Sterling popped to a fresh 6-month high against the common currency on Wednesday, boosted by YouGov’s MRP polling model – which correctly predicted the 2017 election result – forecasting a Conservative majority of 68 come polling day.
“As such, market participants began to further price in the likelihood of a Tory victory, however, as with all opinion polls, the model should be looked at with a healthy pinch of salt.”
What does this mean looking ahead to today?
Michael continued: “Today, markets will likely remain rangebound, with Thanksgiving in the US draining liquidity and thinning trading volumes.”
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Although the data is still a prediction and is not completely accurate, during the 2017 election, YouGov’s constituency by constituency poll predicted an election result that was very close to the end result.
Tweeting about the results, YouGov employee Chris Curtis said: “Please please do remember this. We are not trying to predict the future, we are just looking at the best data we have and using it to work out where things currently stand.”
All of the parties have now released manifestos, and have been hitting the campaign trail hard.
Among the pledges, the Labour Party said they would scrap Universal Credit.
Vowing to scrap the controversial benefit, the manifesto continued: “We will immediately stop moving people onto it and design an alternative system that treats people with dignity and respect. Our ambition in designing this system will be to end poverty by guaranteeing a minimum standard of living.”
Conservative leader Boris Johnson pledged not to increase rates of income tax, national insurance and VAT.
He promised to raise the National Insurance threshold to £9,500 in 2020, with an ambition to raise it further to £12,500.
The Prime Minister also promised £250m a year for childcare, for at least three years, plus a £250m capital spending boost, for “wraparound” childcare – meaning after school or during holidays.
The Post Office is currently offering a rate of €1.1329 for over £400 and €1.1552 for over £1,000.
However, with sterling doing so well – is it best to see if GBP with improve further? Rob Stross, CMO of WeSwap advised: “It goes without saying but when the pound is riding high, it’s a good time to buy your travel money.
“But sometimes it can be hard to know whether to stick or twist. What if the pound gets even stronger?
“We’d recommend doing some research, seeing when the pound was last this strong and keeping an eye on upcoming political events.
“Remember, the FX market likes stability. If you can’t bring yourself to exchange all your money at once, consider exchanging half your money now and half if the pound strengthens even more or starts to weaken. If you don’t want to miss out on future market highs, there are several rate alert systems you can use.”